Investors Warm to Connatix as Digital Ad Spending Rises

While an argument can be made that venture capital volume within the ad-tech industry has peaked, there are still several players warming up to investors and scoring funds. The latest company to impact the market is Connatix.

The New York startup specializing in video technology and syndication received $15 million in growth equity just one month after Boston-based competitor, ViralGains, secured $13.5 million in equity and debt funding. For Connatix, Volition Capital — also based in Boston — led the effort, with the expectation that all proceeds will bolster technology and reach more premium content publishers.

“Connatix makes it simple for publishers to overcome the challenges of monetization, quality, and limited reach of valuable video content ,” said Connatix CEO David Kashak. “This capital gives us additional resources for rapid expansion and innovation, as we deliver on our vision of ensuring publishers stay ahead of emerging trends and media formats.”

The capital infusion comes at a time when digital advertising spending is expected to reach around $229 billion in 2017 (h/t data publisher Statista). By 2020, that’s projected to grow to about $335.5 billion. Connatix has managed to earn industry acclaim in a short amount of time. Founded in 2014, the company managed to earn a No. 2 ranking in comScore’s Video Metrix measurement of audience reach. So far, it has worked with a number of clients — Mashable, Time Inc., Billboard and Entrepreneur — helping them generate roughly 3 billion video views-per-month.

The company also focuses on efficient ad serving and brand safety. Last [sic] year, it partnered with GeoEdge, a provider for ad security and ad quality management solutions. The goal, Kashak told me, was to guarantee publishers a non-intrusive user experience when it comes to video advertising.

Together, the two companies deflect harmful ads in real-time while proactively blocking malware and "low-quality ads" before user complaints are lodged with publishers.